ISX Financial EU Plc (“ISXPlc”) is preparing to list on a regulated securities exchange. To meet our listing rule requirements, ISXPlc must first meet its liquidity requirements and have sufficient identified shareholder participation to demonstrate "free float" or liquidity for trading.
ISXPlc operates flykk.it, which is a EEA regulated electronic money and payments International Bank Account Number (IBAN) based service. The ISXPlc service is regulated by the Central Bank of Cyprus, which is a Eurosystem Central Bank, and requires customers to have their identity verified to meet Anti-Money Laundering Regulations.
It is an ideal method for the Company to use to identify its shareholders, as its wholly in-house.
A video of the flykk sign up process is here.
What do I do?
Step 1 : Individual holders, directors, beneficiaries & trustees > Obtain an ISXPlc IBAN by enrolling to www.flykk.it via an App Store by clicking a button below. This process will verify your identity during the course of setting up a flykk IBAN.
You will need either a valid passport from any country that isnt UN Sanctioned or a EU national ID, your TaxID/TFN, a gas/water/electricity bill, and preferably use the email you registered with at Automic.
If you can’t do this, dont worry, an alternative process will be made available in coming weeks.
Step 2 : update your email and address details at www.automicgroup.com.au, if you haven't already done so. Where possible for individuals update Automic to the email used to enrol to flykk.
For directors, beneficiaries and trustees, we will match you to your holding entity at a later stage, once we complete verification of that holding entity.
Updating your IBAN in Automic provides a secondary way to match your KYC details to your holdings.
In the Automic portal, Please paste your IBAN into the ‘Account Name’ under ‘Portfolio Profile’ > ‘Payment Instructions’ tab.
That is, replace your name with your IBAN number as Automic doesnt have any other field to collect IBAN. For BSB enter “000-000" and Account enter “000000" (or leave with your actual Australian account details as we dont need or use your BSB and Account information.)
We will match directors, beneficiaries and trustees of holding entities at a later stage to their IBAN as we need to verify the holding entity in addition to the individual identity of each director, beneficiaries and trustees.
Why is ISXPlc requesting this?
ISXPlc must as soon as reasonably possible migrate sufficient shareholders off the Automic Register in Australia, to an regulated Central Securities Depositary (CSD), to meet free float requirements and connectivity for clearing and settlement in the European region.
The ISXPlc share register held at Automic only connects to CHESS, which is an Australia only ‘CSD’.
Minimum Free Float of Securities in Public Hands
European region regulations require a percentage free float of the issued securities to be in the hands of the public, that is, excluding insiders & directors.
Usually, the higher the free float, the more liquidity a stock potentially has, leading to higher trading volumes.
For ISXPlc to meet prospectus, listing rules and demonstrate verifiable free float requirements, sufficient numbers of shareholders must have their identity verified in the process to meet Central Securities Depositary (CSD) Regulations, Taxation reporting and Listing Rules.
This exercise is independent of individual shareholders opening a brokerage account. Once a CSD number has been issued to you, that number (like a HIN in CHESS) is used to identify your holdings, and assist you to transfer your shares to your broker's account.
Onboarding to ISXPlc operated flykk.it to get identified
ISXPlc operates flykk.it, which is a EU/EEA regulated electronic money and payments service. This service is regulated by the Central Bank of Cyprus, which is a Eurosystem Central Bank.
Following identity verification (or KYC) to meet Anti-Money Laundering Regulations, Account holders are issued a full International Bank Account Number (IBAN) which allows for transfer of € between EU/EEA banks.
For ISXPlc holders that have either an EU National ID or any Passport (incl Australian, NZ, UK, EU but excluding UN, UK or EU sanctioned countries such as Russia, Iran, North Korea etc), we encourage you to onboard to the latest version of http://flykk.it for ISXPlc to issue an International Bank Account Number (IBAN) to you.
You will also need to have a gas/water/electricity bill handy, and provide your TaxID /TFN in order to meet Common Reporting Standard (CRS) requirements for the EU and Australia.
Once you have an IBAN, your identity / KYC data can be shared with a regulated CSD, which is subject to strict privacy laws and the same Anti-Money Laundering requirements as ISXPlc. The CSD will provide the connection between your brokerage account and the stock exchange allowing holders to trade once ISXPlc is listed.
Use of the Company’s own regulated services and technology to meet Anti-Money Laundering regulations keeps costs low.
No Fees
There are no fees or payments required to onboard to http://flykk.it. ISXPlc will not charge any dormancy or any other inactivity fees to shareholders.
You may close or retain your flykk account following ISXPlc’s admission to list.
Share Registry
Please ensure your details are up to date at http://automicgroup.com.au and use the same email to signup to flykk as recorded at Automic or update Automic so emails match.
For directors and trustees, we will match your IBAN to the Company, Trust or Superfund once we enroll the holding entity. Enrolment of these entities and linkage will follow at a later stage.
Driving Licences
Unfortunately, driving licences don’t meet EU standards to onboard to an IBAN. ISXPlc can accept a driving licence during subsequent identity verification processes strictly to allow for CSD onboard, however no IBAN will be issued under that process.
Holders without a Passport
Follow on instructions will be sent at a later stage to holders that do not have a valid passport from a non-UN sanctioned country or EU national ID.
Please await instructions which will follow in approx 4-6 weeks.
Directors, Trustees and Beneficiaries
Directors, Trustees and Beneficiaries should follow this process in preparation of onboarding of their associated Companies, Trusts or Superfunds.
Non Individuals : Custodians, Companies, Trustees, SuperFunds
Non Individuals such as Custodians, Corporates, Superfunds and Trusts will be onboarded at a later stage - however we encourage directors, trustees and beneficiaries to onboard to flykk to get identified, as identity verification will be a requirement in any case.
Joint Accounts
If you have joint accounts at Automic, each holder should open a flykk account using your Automic registered email for the first holder, with a separate email for the second holder. We will locate and link your holdings at a later stage.
SP1 Holders
If as a Southern Cross Payments Ltd (SP1) holder at the date of demerger in October 2021 you still have not updated your details at Automic, then you should do so now.
As at demerger date, you were entitled to One (1) ISX Financial EU Plc share for every Ten (10) SP1 shares held.
https://www.southerncrosspayments.com.au/demerger
Critical First Step
Please note that obtaining an IBAN is a critical first step for the company to determine shareholder free float and participation.
ISXPlc and its shareholders must achieve verified minimum free float (excluding insiders and directors) in order to meet Listing rules and Prospectus requirements.
Follow on steps and requirements will be announced once we have met minimum shareholder spread participation levels.
This will include providing consent to transfer your KYC data to our Listing Agent and the CSD.
What do I do again?
Step 1 : Individual holders, directors, trustees > Obtain an ISXPlc IBAN by enrolling to www.flykk.it via an App Store by clicking a button below. This process will verify your identity during the course of setting up a flykk IBAN.
You will need either a valid passport from any country that isnt UN Sanctioned or a EU national ID, your TaxID/TFN, a gas/water/electricity bill, and preferably use the email you registered with at Automic..
If you can’t do this, dont worry, an alternative process will be made available in coming weeks.
Step 2 : update your email and address details at www.automicgroup.com.au, if you havent already done so. Where possible for individuals update Automic to the email used to enrol to flykk.
For directors, beneficiaries and trustees, we will match you to your holding entity at a later stage, once we complete verification of that holding entity.
Updating your IBAN in Automic provides a secondary way to match your KYC details to your holdings.
In the Automic portal, Please paste your IBAN into the ‘Account Name’ under ‘Portfolio Profile’ > ‘Payment Instructions’ tab.
That is, replace your name with your IBAN number as Automic doesnt have any other field to collect IBAN. For BSB enter “000-000" and Account enter “000000" (or leave with your actual Australian account details as we dont need or use your BSB and Account information.)
We will match directors and trustees at a later stage to your IBAN.
Listing Agent/Sponsor Broker Mandate & Brokerage Account
Subject to sufficient shareholders being onboarded to meet spread requirements, we will advise options on brokerage accounts for trading.
For the purpose of onboarding initially to the CSD, we require individual shareholders, directors and beneficial owners with more than 25% holdings in Companies, Trusts or Superfunds to complete KYC by opening a flykk account or via the dedicated KYC process to be announced in coming weeks.
Once the Company is listed, you may choose a Participating Broker from either of the exchanges upon which ISXPlc announces its admission to list.
The Listing Agent/Sponsor Broker as intermediary may be a requirement for onboarding to the CSD during the pre-listing process.
The Listing Agent/Sponsor broker will be announced with the prospectus lodgement.
What is a EU and UK Regulated Central Securities Depositary
The EU Regulated CSD’s are a network of interconnected EU member state clearing and settlement participants, that provide the underlying mechanism to clear and settle securities within the EU and UK, across EU Regulated Exchanges such as Athens, Amsterdam, Cyprus or Frankfurt and the London Stock Exchange (LSE).
For example, the UK CSD is known as “CREST” which allows for LSE clear and settlement. The Australian equivalent is “CHESS”for ASX Clear, which is not connected to any exchange other than the ASX.
EU and UK Regulated CSDs operate the infrastructure that enables the so-called securities settlement systems to interconnect between the EU member state exchanges and UK.
In particular, EU and UK Regulated CSDs